Hardware wallet
A small dedicated device that keeps your private keys offline and signs transactions internally. The key never leaves the device, so malware on your computer can’t get at it.
Alsosigning devicehardware signercrypto hardware walletHW wallet
On the learning path: Stage 6 · Step 1 – Hardware wallets compared
As with any wallet, your bitcoin are on the blockchain. The device only holds your private keysGlossaryPrivate keyA secret, randomly generated number that you use to sign transactions and so control your bitcoin. Anyone who knows the private key can spend the bitcoin that belongs to it – it must never fall into anyone else’s hands.On the learning path: Stage 5 · Step 3 – Backing up your seed phrase →In the glossary →. An app on your phone or computer shows your balance and prepares payments; the signing happens on the device. Depending on the model, it connects via USB, Bluetooth, NFC, QR codes or a memory card. The advantage: the key stays separate from devices that are online and possibly compromised.[1] Devices with no cable or wireless connection at all are called air-gappedGlossaryAir gapAn air-gapped signing device has no cable or wireless connection to other devices. Transactions travel back and forth by QR code or memory card – so the private key stays completely offline.On the learning path: Stage 6 · Step 1 – Hardware wallets compared →In the glossary →.
What matters
- Only buy from the manufacturer or authorised resellers. If a ready-made seed phraseGlossarySeed phrase (recovery phrase)A sequence of usually 12 or 24 words from which your wallet derives all its private keys. Anyone who knows the words has full access to your bitcoin – so they belong in an offline backup and never in anyone else’s hands.On the learning path: Stage 5 · Step 3 – Backing up your seed phrase →In the glossary → comes in the box, the device has been tampered with – don’t use it.
- Trust the display, not the computer: check the receiving address, the amount and the recipient on the device.
- A backup is still essential: if the device is lost or breaks, you restore everything from your well-protected seed phrase.
- Keep the firmware up to date and read the manufacturer’s warnings: in July 2026 it emerged that a firmware bug in COLDCARDProvider · Hardware walletCOLDCARDBitcoin-only signing device from Coinkite (Canada) with an air gap via microSD, NFC and QR – more for advanced users.Hardware manufacturer – no financial licence required · reviewed Sept 2026Price: Q $319, Mk5 $219 (promotional prices, as of Sept 2026)On the learning path: Stage 6 · Step 1 – Hardware wallets compared →Our profile →Official website ↗Only buy hardware wallets from the manufacturer or an authorised reseller. devices had weakened seed generation; attackers stole funds. An update doesn’t repair seeds that were already created – according to the manufacturer, anyone affected should move to a new seed.[2] Details in the Bitcoin radar.
Related terms
These terms are closely connected.
- This termHardware wallet
- Cold storageStoring bitcoin in a way that keeps the private keys from ever touching the internet – for example on a hardware wallet or an offline device. It protects against online attacks, but requires a carefully kept backup.
- Secure element (security chip)A chip specially hardened against physical attacks, like the ones in bank cards and passports. In many hardware wallets it protects the PIN and secrets if the device falls into the wrong hands.
- Air gapAn air-gapped signing device has no cable or wireless connection to other devices. Transactions travel back and forth by QR code or memory card – so the private key stays completely offline.
- Seed phrase (recovery phrase)A sequence of usually 12 or 24 words from which your wallet derives all its private keys. Anyone who knows the words has full access to your bitcoin – so they belong in an offline backup and never in anyone else’s hands.
- PSBT (partially signed Bitcoin transaction)A standard format for Bitcoin transactions that are not yet fully signed. It lets a wallet app, a hardware wallet and co-signers pass a payment between them without sharing private keys.
Explained in depth
These articles go into more detail:
- Deep dive · Stage 6Setting up a hardware walletSet up a hardware wallet safely: buy from the manufacturer, check the seal and authenticity, write down the seed phrase, set a PIN and confirm every address on the device.
- Stage 6 · Step 1Hardware wallets comparedBitBox, Trezor, Jade, COLDCARD, Ledger and SeedSigner compared: open code, security chip, air gap, display, prices – and every major incident.
- Deep dive · Stage 5Types of walletMobile, desktop, hardware or paper, hot or cold, Bitcoin-only or multi-coin: the types of wallet there are, what they can do and who they suit.
More from „Wallets & security“
Sources2 sources · 2 publishers
The superscript numbers in the text refer to these sources.
- External signers – Bitcoin Design Community – Bitcoin Design Guide (accessed 28/09/2026)
- COLDCARD Security Status – Coinkite, July 2026, updated until 06.09.2026 (accessed 28/09/2026)
This entry is for education only and is not investment, tax or legal advice.